Chapter 580: Mass Property Sale
Chapter 580: Mass Property Sale
Over 150 luxury units in the two blocks of Dili Gende Mansions, 120 high-end apartments in Sham Shui Po, and 160 high-end residences in Causeway Bay—Lu Jiaxin intended to put all these properties up for sale.
General Manager Chen Ming was startled: "Boss, Diligent Mansions are prime properties. Once we sell them, we won't be able to buy them back."
The apartments in Sham Shui Po and Causeway Bay could be sold and replaced with better-located ones with superior facilities. But the luxury units in Dili Gende Mansions were different; the tenants there had status, and the rent was high. Most importantly, the property values had increased significantly in just half a year. With the current real estate boom in Hong Kong, property values in Dili Gende Mansions would continue to rise, so selling now would result in a significant loss.
Lu Jiaxin explained, "I have a major project in mind, but I'm short on funds, so I need to liquidate some assets. I'll sell the two blocks of Dili Gende Mansions but keep the land. We can build a third block later."
Xin Xin Property was Lu Jiaxin's personal asset, so deciding to sell was entirely up to her. Chen Ming had done his duty by analyzing the pros and cons for her, and seeing her insistence, he no longer objected.
The next day, Xin Xin Property released news that they would be selling the high-end apartments and residences in Dili Gende Mansions, Sham Shui Po, and Causeway Bay.
People in Hong Kong loved to speculate, and with the current real estate boom, many were investing in property. Out of ten buyers, seven were speculators—this was not an exaggeration in Hong Kong. Upon hearing that Xin Xin Property was releasing so many quality properties, one agent immediately rushed over and put down a deposit for ten units. He would have bought more if he had the money.
As soon as word got out, people flocked to Xin Xin Property, filling the lobby. Even past closing time, many refused to leave, crowding the premises.
At the same time, Sun Shuangcheng, Wu Ziyu, and several stockbrokers received a notification from Jiang Wen to sell all the stocks under Lu Jiaxin's name.
Wu Ziyu, recalling Lu Jiaxin's previous stock maneuvers, asked, "The stock market is doing well now. Why sell all the stocks? Has Miss Lu received some insider information?"
Jiang Wen smiled and replied, "The boss and Mr. Su plan to invest in a major project, but they need more funds."
Wu Ziyu felt that this was just an excuse. Thinking about Lu Jiaxin's operation two years ago, he pondered for a moment before deciding to sell the stocks he and his family had bought. He also communicated with several major clients and reduced their stock holdings.
Xin Xin Property's big move naturally attracted a lot of attention.
Zong Shi Meng called directly to ask, "Jiaxin, the Di Li Gen De Mansions are such prime properties. Why did you suddenly decide to sell them?"
Lu Jiaxin replied with the reason she had given before, "Nie Zhan has his eyes on a big project, but we're short on funds, so we have to liquidate some assets. We won't sell the office buildings, only Diligence Mansions. Sigh, I'm actually quite reluctant to let them go."
"Then keep a unit for me," Zong Shi Meng requested.
Lu Jiaxin readily agreed and then asked, "Sister Shi Meng, if I recall correctly, your due date is next month, right?"
With all the recent busyness, she had forgotten that Zong Shi Meng was due to give birth soon. A new baby meant gifts from friends and family. With the child's arrival imminent, she needed to prepare a present. She didn't have to think too hard—she could simply prepare a set of gold jewelry with a snake motif, the zodiac sign of the coming year, from her own company.
Zong Shi Meng confirmed the date with a smile and then hinted, "The due date is May 26th, but it's not set in stone. Some babies arrive early, while others are fashionably late. Jiaxin, you'll understand how adorable they are when you become a mother yourself."
This subtle way of urging her to marry was both amusing and exasperating. Lu Jiaxin replied, "Sister Shi Meng, I'm not even engaged yet, let alone thinking about having a baby!"
The engagement date had already been set—the 18th of the ninth lunar month. Lu Jiaxin hadn't informed the Lu family yet, intending to bring Lu Hongjun and Lu Shan over before the engagement. What she wanted most was for Lu Jiaguang to come, but as a government official, the current situation made it impossible for him to visit Hong Kong. As for the others, their presence would only invite ridicule and possibly fuel their greed.
"Time flies, and before you know it, the day will come," Zong Shi Meng said. "Sometimes I look back and can't believe that I'm about to have my fourth child. It feels like I just started dating my husband."
The two women chatted for a while longer before Lu Jiaxin had to hang up due to other matters. After ending the call, a smile appeared on her face. Sister Shi Meng's cheerful tone indicated that she was doing well. Indeed, having survived under her mother-in-law and grandmother-in-law's watchful eyes for so many years was no small feat.
A week later, Wan Sheng Property's new development opened for sale. Those with their ears to the ground immediately sensed something amiss. Lu Jiaxin had just sold a large number of properties, and now Wan Sheng Property was opening a new development ahead of schedule. Even if they were short on funds, Lu Jiaxin had liquidated over two billion yuan, so there was no reason for Nie Zhan to open the development a month early.
Nie Jingwen called Nie Zhan to ask, "Third brother, why did you suddenly decide to open the development a month early? Have you received some unfavorable news?"
Although they were brothers, Nie Zhan had no intention of revealing the truth to him. Lu Jiaxin had trusted Su Heyuan with the information, but Nie Zhan did not feel the same about his eldest brother.
"Big brother," Nie Zhan replied, "the current real estate situation is similar to the stock market just before last year's crash. Everyone is rushing to buy properties like mad. I'm worried that the real estate market will experience a similar crash, so I'm opening the development early to recoup some funds and pay off part of our bank debt."
The last time Nie Zhan had given advice, they had ignored it and suffered heavy losses. This time, Nie Jingwen had no choice but to take it seriously, "Do you think the property market will crash?"
Nie Zhan had predicted the stock market crash, although he hadn't been sure when it would happen. But this time, Lu Jiaxin had forced his hand.
Nie Zhan didn't want to give his brother false information and risk being blamed for any losses, "Big brother, you also studied economics, so you know that nothing stays the same forever. Just as the stock market experiences fluctuations, so does the property market."
"I'm just taking precautions," he continued. "Our company's debt ratio is too high. Even a slight fluctuation in the market will have the banks knocking on our door for repayment."
Before last year's stock market crash, he had lowered the debt ratio to fifty percent. But after the crash, they had stockpiled too much land, and now the debt ratio had climbed to seventy-two percent. Before the crash, a debt ratio of sixty-eight percent had worried many of the higher-ups, and there had been plenty of naysayers. But now, with Xin Xin Property's backing, no one was concerned.
Nie Jingwen understood, and Nie Zhan added, "I don't think the property market will crash as badly as the stock market, and even if it does, I believe it will be short-lived."
After hanging up, Nie Zhan called his stockbroker and instructed him to sell all the stocks under his name. If Lu Jiaxin's prediction turned out to be incorrect, they could always buy them back later, minimizing losses. But if her prediction was accurate, not selling the stocks would result in significant losses.
As for the company's stocks, Nie Zhan had no plans to sell them. Firstly, their proportion was too small to make a difference, and secondly, selling them would invite even more speculation.
(End of Chapter)
Chapter end
Report
